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This Old House - Do-it-Yourself

Question-You,as a broker, have received a $4,000 deposit from your salesperson on a $10,000 sale. Escrow is scheduled to close in one week. The seller, your principal, had agreed previously to give you $500 commission on all transactions...(cont'd).

Written by Posted On Friday, 12 July 2019 05:00

You, as a broker, have received a $4,000 deposit from your salesperson on a $10,000 sale. Escrow is scheduled to close in one week. The seller, your principal, had agreed previously to give you $500 commission on all transactions. He now instructs you to put all monies in escrow. You, as a broker, should:

(A) Put $3,500 in escrow and retain $500 commission
(B) Put $3,500 in escrow, retain $500 as commission and pay the salesman out of the $500
(C) Put $4,000 in escrow
(D) Put $4,000 in escrow with instructions to retain $3,500 for the seller and to disburse $500 to you

Answer:  (C) The broker must do as instructed by his principal. Since the broker is not a party to the escrow, he cannot give any instructions to the escrow.

Read 1659 times Last modified on Friday, 12 July 2019 06:20
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